Early warning tools and preventive restructuring following the transposition of the EU insolvency Directive in Italy. (RI §425608)  

The legislative decree no. 83/2022, which transposed the Directive no. 2019/1023/EU, made significant changes to the original structure of the Italian Insolvency and Crisis Code, enacted in 2019. The work aims at illustrating the main innovations provided by the Code on early restructuring and crisis prevention, focusing in particular on the rules concerning corporate governance and directors’ organizational duties, the early warning tools and the new negotiated settlement procedure.

I. A NEW PARADIGM IN CORPORATE CRISIS MANAGEMENT. II. A ‘MULTILEVEL’ PREVENTION SYSTEM. III. THE ORGANIZATIONAL DUTIES OF DIRECTORS. IV. EARLY WARNING TOOLS. 1. The role of the supervisory body. 2. The role of public creditors and intermediaries. V. NEGOTIATED SETTLEMENT OF THE CRISIS (COMPOSIZIONE NEGOZIATA DELLA CRISI). 1. Requirements for the commencement and the continuation of the proceedings. 2. The ‘reasonable’ chances of recovery. 3. The expert: role and function. 4. The business management in the course of the proceedings. 5. The initiation of the proceedings. 6. Duties of the parties involved in negotiations. 7. Protective measures. 8. Positive outcomes of the negotiations. 9. Negative outcomes of the negotiations. VI. CONCLUSIONS

Keywords: restructuring – insolvency – prevention – early warning;